LOCAL ECONOMIC DEVELOPMENT DESK STUDY

There are very few policy papers on development of the construction sector. In 1998 the law on
construction was passed to regulate relations on designing buildings, production of construction
materials, construction and use of buildings, and technical monitoring.
4.5 The Government’s policy on reduction of poverty and unemployment
The Government of Mongolia has set major objectives to decrease poverty and unemployment and
approved many policy papers. The main election slogan of the ruling party in 2000 was “Save the
state from crisis and eliminate poverty for the people” and electors supported this objective
allowing absolute victory for the party.
• In September 2000 the President of Mongolia attending the UN assembly that adopted
Millennium Declaration signed it. The declaration aimed to reduce poverty for people in the
new millennium and ensure new quality of livelihood. The SIK identified and adopted
millennium development objectives adapting the declaration to the country. As a result of
its implementation the poverty in the country was to decrease two times and reduce
percentage of the poor in the total population under 18% by 2015.
• In 2001 the SIK approved the Law on Employment Support and its Article 4 defined the
Government’s policy on employment support in the following manner:
1. Provide opportunity for employment for the population;
2. Coordinate investment with employment support measures;
3. Regulate workforce demand and supply effectively;
4. Develop workforce in line with market demands;
5. Improve registration and database of employment of the population;
6. Expand the scope of individuals covered under unemployment insurance and protect
each citizen against unemployment.
• The Government of Mongolia developed and approved strategic paper on economic growth
support and poverty reduction in 2003 with recommendations from the World Bank. The
document outlined to increase economic growth and ensure stability for people’s livelihood
for 2003-2007 using three approaches i.e. provision of business environment, ensure macro
economic stability and support human resource development. Also it set out that one of the
main objectives of poverty reduction strategy was to allocate resources generated as a result
of the economic growth appropriately among the population especially direct it to the poor.
• The holistic policy on the national development based on MDGs approved by the SIK in
January 2008 outlines to intensify economic growth of Mongolia, increase number of jobs
substantially, strengthen families, develop livelihood capacity of people, eradicate poverty
by reforming the employment and social welfare system entirely and achieve the MDGs.
THE FIRST STAGE (2007-2015):
Strategic objective #1. Implement economic policy directed toward the poor and to
create relatively well-off middle class and reduce poverty twice by ensuring their income increase.
1. The strategic document on support for the economic growth and poverty reduction will be
updated regularly once every two years in line with the National Development Policy and
implementation will be intensified.
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